Bankruptcy Assessment of Construction & Building Sub-Sector Companies for the 2019-2021 Period Using The Altman Z-Score Method

Abstract

The research was conducted on construction and building sub-sector companies listed on the IDX for the 2019-2021 period. The purpose of the study is to determine and analyze how much bankruptcy potential is in construction and building sub-sector companies listed on the IDX for the 2019-2021 period. The population was 22 companies and the sampling in the study was 10 construction and building sub-sector companies with purposive random sampling techniques. Data analysis method using Altman Z-Score Modifkasi. The results of the study are that there are 2 companies that are predicted to experience bankruptcy or financial distress, namely PT. Adhi Karya (Persero) Tbk (ADHI) and PT. Waskita Karya Tbk (WSKT). PT. Housing Development (Persero) Tbk (PTPP) is a company that is experiencing financial problems and has the potential to go bankrupt. For 7 other companies are in safe zone conditions which means there is no potential for bankruptcy. Research suggestions should be that companies that are predicted to experience failure conduct an objective business evaluation. As well as for PT. Pembangunan Perumahan (Persero) Tbk (PTPP), which is predicted to experience financial problems and potentially go bankrupt, should optimize its performance and always control risks both internal and external that can affect the company's liquidity which can cause financial difficulties.